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can you please check and make sure my answers are right? Suppose you purchased a house 3 years ago and took out a mortgage for
can you please check and make sure my answers are right?
Suppose you purchased a house 3 years ago and took out a mortgage for $200,000 with a 7.5% interest rate. The mortgage is a 30 year mortgage with monthly payments. Today you can refinance the loan at a 6.5% interest rate for a fee of $7,500. Assume that you would only refinance enough to repay the old loan and the cost of refinancing. A - If you refinance by taking a new 30 year loan at the new rate, how much will you save per month? B -Should you refinance today? ip: Use the best interest rate available to you to determine the PV. C - If you expect to move in 3 years, would you want to refinance? Tip: You will have to make payments for the years until you move then pay whatever loan balc consider what the difference in both payments and future value will beStep by Step Solution
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